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Your mortgage note is the most important document in your loan
1. It belongs to you;
2. It is the evidence that you owe money on your home;
3. Whoever holds it has the right to collect the money due on it;
4. When you make your last payment your deed of trust says you are to get it back;
5. Do you know who holds your note right now?
Loan Service Provider
If you are making your monthly payments to a "loan service provider", that entity is not the holder of your note, their client is the holder (otherwise called the "beneficiary"). Are you sure that service provider is even entitled to collect your payments from you for the beneficiary?
The Problem
If your service provider isn't paying the beneficiary, when you make your last payment the service provider, not being the noteholder, can not "reconvey" (give you back) your note. The provider may give you a document that may look like, and say it is, a full reconveyance, but without the original note it it is not. The real beneficiary (note holder) can come along later and throw you out of your home even after you receive the bogus reconveyance after making your last house payment. Ouch!
Nothing is more important to a borrower than to know who holds his original note, and to make sure that his note holder is receiving his monthly payments.
Foreclosure
Only the holder of your original note is allowed by law to foreclose on you if you fail to make your house payments. He does that by telling the trustee of your deed of trust to proceed with the foreclosure. Are you sure that the " note holder" really had the note, or was it just forcing the issue hoping you wouldn't catch on?
Maybe you are facing foreclosure now, or someone you know is. There are some inexpensive things you can do to force them to do it legally or abandon the foreclosure.
Were You Foreclosed On?
Deeds of trust are foreclosed on without going to court (non-judicial foreclosure) and must follow the statutes to the letter! For example: If the forecloser did not have the original note, or if your forecloser was not of record (on record at your county recorder's offiec as an assignee of your note), your foreclosure may be set aside and you could have your house back.
You are only obligated to pay the holder of your note, not a third party pretender. Again, that party (the holder of your note) is the only one who can foreclose on you.
You might get your house back, and you don't have to pay anyone who is not the holder of your note. You might even convert your note from one that is secured (they take your house if you don't pay) to one that is un-secured (they must take you to court and prove you owe the money). While you don't have to make your house payments anymore because they don't hold the note, if the note holder ever does show up you would have to pay him.
Return of Payments
If the entity that foreclosed on you didn't have the right to foreclose, neither had they the right to collect payments from you yea these many years. So, not only could you get your home back, you'll need all those payments back so you can pay the real note holder if and when he ever shows up. You have a legal action against your so called service provider.
Can These Things Be?
In a word, yes. It's a matter of sending a couple letters. Then deciding for yourself, from the responses to those letters, what the possibilities are for you.
LET'S TALK
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